Summary: The Reserve Bank of India (RBI), through Circular No. RBI/2026-27/290, bearing reference DoR.RET.REC.247/12.01.001/2026-27 dated October 09, 2026, has announced a change in the daily minimum Cash Reserve Ratio (CRR) maintenance requirement applicable to all scheduled banks under Section 42(1) of the Reserve Bank of India Act, 1934.
Under the existing arrangement described in the circular, scheduled banks are permitted to maintain a daily CRR balance of not less than 90 per cent of the prescribed requirement during each day of the reporting fortnight. However, the average CRR maintained over the reporting fortnight must not fall below the CRR prescribed by the Reserve Bank.
Following a review of prevailing liquidity conditions, the RBI has decided to increase the minimum daily maintenance requirement from 90 per cent to 99 per cent of the required CRR. The revised requirement will become effective from the reporting fortnight beginning October 16, 2026.
The change substantially reduces the flexibility previously available to scheduled banks in managing their daily reserve balances within a reporting fortnight. Banks will consequently be required to maintain a daily reserve balance much closer to the prescribed CRR requirement, while continuing to comply with the applicable fortnightly average requirement.
Importantly, the circular changes the minimum daily maintenance percentage rather than announcing any revision to the prescribed CRR rate itself. The direction has been communicated to all scheduled banks and is signed by Manoranjan Padhy, Chief General Manager, Reserve Bank of India.
Reserve Bank of India
Section 42(1) of the Reserve Bank of India Act, 1934 – Change in Daily Minimum Cash Reserve Maintenance Requirement
RBI/2026-27/290
DoR.RET.REC.247/12.01.001/2026-27 | Dated: October 09, 2026
All Scheduled Banks,
Madam / Sir,
Section 42(1) of the Reserve Bank of India Act, 1934 – Change in Daily Minimum Cash Reserve Maintenance Requirement
The scheduled banks are allowed to maintain minimum Cash Reserve Ratio (CRR) of not less than 90 percent of the required CRR on all days during the reporting fortnight, in such a manner that the average of CRR maintained daily shall not be less than the CRR prescribed by the Reserve Bank.
2. On a review of the current liquidity conditions, it has been decided to increase the minimum daily maintenance of the CRR from 90 per cent of the requirement to 99 per cent effective from the fortnight beginning October 16, 2026.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
